The contract manufacturing segment in India is becoming a new and potential opportunity for foreign investments. As per various market reports, India’s demand for contract manufacturing services is constantly rising. This is owing to the growing cost pressure on the companies across sectors.
Along with this, robust consumer demand for finished goods and comprehensive support from manufacturing consultants India are collectively boosting the nation’s contract manufacturing market.
In order to support investments in the contract manufacturing sectors in India, the Government has now allowed a 100% FDI through automatic route. This policy supports higher FDI flow, thus making India open to business opportunities. In addition, it positions the country as a favourable destination for manufacturing for foreign players looking for suitable locations to expand their manufacturing operation in the face of the ongoing U.S.-China trade war.